Tim Cook

Asymco’s Horace Dediu has put together a couple of charts showing that while the number of visitors to Apple’s retail stores continues to climb, the rate of growth is flattening off.

The underlying reason appears to be a slow-down in the rate at which Apple is opening new stores, as the average number of visitors per store has remained stable for the past three years … 
Expand
Expanding
Close

Following several reports this month and hints from Tim Cook that Retina iPad mini stock could be in short supply when the device launches next month, the hit and miss DigiTimes reports today that the shortages are due to limited supply of displays from Apple’s supplier Sharp. Specifically, the report claims that Sharp’s “Oxide TFT process is seeing low yield rates” leading to a less than ideal supply of  7.9-inch Retina panels. Sharp accounts for around 40% of the displays for iPad mini with Retina display production, while LG Display is providing the other approximately 60%, according to the report:
Expand
Expanding
Close

Following Apple’s earnings results for Q4 2013, which includes a record iPhone sales number for the September quarter, Apple CEO Tim Cook has emailed employees to congratulate them on the results. Cook says that Apple “has never been stronger,” and highlights the products being released this fall. “I am happy to report that Apple’s business has never been stronger, and we are heading into the holidays within amazing lineup led by the new iPhone 5s, iPhone 5c, the stunning iPad Air and iPad mini with Retina display,” Cook says in the memo…

Expand
Expanding
Close

Following an announcement yesterday from billionaire investor Carl Icahn that he had sent a letter to Apple CEO Tim Cook and would post the full letter online today, Icahn’s new website has now officially launched with the full text of the letter. In the letter on Icahn’s new website called the Shareholders’ Square Table, the investor urged Tim Cook to implement the $150 billion buyback plan that he has been suggesting since first announcing in August that he had taken a “large position” in Apple:

The S&P 500 trades at roughly 14x forward earnings. After backing off net cash, Apple trades at just 9x (not factoring into account that the company has a significantly lower cash tax rate than the rate Wall Street analysts use). This discount (cash adjusted) becomes even more compelling given our confidence that Apple will grow earnings per share at a rate well in excess of the S&P 500 for the foreseeable future. With such an enormous valuation gap and such a massive amount of cash on the balance sheet, we find it difficult to imagine why the board would not move more aggressively to buy back stock by immediately announcing a $150 Billion tender offer (financed with debt or a mix of debt and cash on the balance sheet).

While this would certainly be unprecedented because of its size, it is actually appropriate and manageable relative to the size and financial strength of your company. Apple generates more than enough cash flow to service this amount of debt and has $147 billion of cash in the bank. As we proposed at our dinner, if the company decided to borrow the full $150 billion at a 3% interest rate to commence a tender at $525 per share, the result would be an immediate 33% boost to earnings per share, translating into a 33% increase in the value of the shares, which significantly assumes no multiple expansion. 

In the letter Icahn adds that if the proposed $150 billion buyback was executed immediately, Apple would experience “further stock appreciation of 140% for the shareholders who choose not to sell into the proposed tender offer.” Icahn also agrees to not participate in the buyback by withholding his shares to “ invalidate any possible criticism” regarding the long term benefits of the proposal.

Icahn also noted that he has increased the size of his position in AAPL from 3,875,063 shares to 4,730,739 shares, a value of around $2.5 billion, and that he intends to buy more.

While there isn’t a ton of new information regarding Icahn’s new website, it is already accepting sign ups and a description on the website explains it as “a platform from which we can unite and fight for our rights as shareholders and steer towards the goal of real corporate democracy.”

Icahn says that Cook will call him after the October 28th earnings announcement.

Tim Cook will call Icahn after earnings on Oct. 28…Icahn says. $AAPL

— Cadie Thompson (@CadieThompson) October 24, 2013

Icahn’s full letter to Tim Cook is below:

Expand
Expanding
Close

Update: OS X Mavericks is available now as a free download on the Mac App Store. 

Apple has done something it hasn’t done before with a major release of OS X, announcing today during its iPad event that it will release OS X Mavericks, the latest version of its desktop OS, later today for free to all users.

Mavericks is available starting today for iMac and MacBook Pros from 2007 or later, 2008 MacBook Air, MacBook, and Mac Pro or later, and the 2009 Mac mini or later.

Apple first showed off Mavericks back in June at its WWDC developer conference and has since seeded several betas as well as Golden Master release followed by silent update to the GM release that could likely be the version Apple ships later this month. Despite not receiving a radical visual overhaul like iOS 7, OS X Mavericks includes over 200 new features and many big new user facing features like iBooks, improved multiple display support, iCloud Keychain, new Finder features, Maps, quick reply and lock screen notifications, auto-updating apps, and a number of under the hood enhancements to improve battery life and performance. (Full press release below)
Expand
Expanding
Close

Keeping with tradition, Tim Cook kicked off Apple’s iPad event today by giving us an update on some of the company’s core businesses and accomplishments since last checking in. Below is a roundup of the numbers and stats that Cook shared on stage today during the event including updates on the new iPhones, iOS 7 adoption, iTunes Radio, and the App Store:

iPhone & iOS 7:

– 9 million iPhones launch weekend, biggest iPhone launch ever

– iOS 7 200 million devices in five days-

-64% of devices currently running iOS 7

iTunes Radio:

– iTunes radio, 20 million listeners, 1 billion songs

App Store:

-1 million apps on App Store

-60 app billion downloads

-$13B earned by developers (up from 11 billion in July)

iPad:

-170 million iPads sold

-475k iPad apps (up from 375k in July)

(via Dribbble)

A very cool iWatch concept made by Thomas Bogner takes a very different approach to the highly anticipated and rumored wearable computer by Apple: Bogner imagines the device borrowing influence from the Nike Fuel Band with iOS 7 design language and features.

We recently ran a poll asking readers to vote on the best of various iWatch concepts, most of which look more like a traditional watch than something Apple created, but a much smarter Nike Fueld Band-style wearable computer could just what the doctor ordered.

Bogner’s iWatch concept features Siri-style voice input for apps like Mail, Messages, and Calandar, and Music control, and features integrated Nike fitness software like Apple’s iPhone and iPod touch.
Expand
Expanding
Close

There was a lot of confusion yesterday when Verizon’s results were discussed, with more than one commentator confusing activations and sales. For the record, what Verizon announced was that 51 percent of its activations were iPhone, not 51 percent of its phone sales.

If you doubt the importance of this distinction, I have one word for you: T-Mobile. As of 11th April, the carrier had two million iPhone activations. Its iPhone sales as of the same date? Zero: T-Mobile didn’t start selling iPhones until the following day.

The difference between the two numbers is particularly dramatic with high-end handsets like the iPhone … 
Expand
Expanding
Close

The Wall Street Journal is reporting that Apple is cutting component orders for the iPhone 5c by up to a third, reiterating the news that Apple is curtailing iPhone 5c production. This backs up a multitude of reports by industry analysts, which said that iPhone 5c demand is weaker than Apple’s initial expectations.

Apple told its Taiwanese assemblers Pegatron Corp. and Hon Hai Precision Industry Co. that shipments of the iPhone 5C in the fourth quarter would be cut, the people said. Pegatron, which analysts say assembles two thirds of the iPhone 5Cs, was told orders would be cut by less than 20%, said a person familiar with the matter. Hon Hai, which assembles the remaining low-cost iPhones, was told orders would be cut by a third, said two people familiar with the matter.

In the past, Apple CEO Tim Cook has cautioned against supplier shipments analysis as an indicator of sales performance, saying that Apple sources components from multiple manufacturers. However, the sheer number of independent reports about cuts to iPhone 5c suggests there is some underlying truth to the story. On the flip side, iPhone 5s sales seem to be booming, doing better than predicted.

Expand
Expanding
Close

Last night, Apple announced that it had finally found a new Head of Retail: Burberry CEO Angela Ahrendts. Ahrendts has been CEO of the fashion retailer for several years, leading the company through substantial growth in international markets. With that global growth experience and focus on high-end products, she seems like a natural fit to succeed in a role that has been so controversial over the past couple of years.

And Apple CEO Tim Cook seems to agree. The Apple chief executive took the time to keep his employees in the loop regarding the hiring process. Cook sent a company-wide memo this morning that discusses how he found Ahrendts and how she will fit into the Apple culture. While Ahrendts will be running Apple’s physical retail stores, she will also run Apple’s online stores. This is the first time in which the Retail Head’s domain covered both offline and online sales…

Expand
Expanding
Close

According to typically-reliable analyst Ming-Chi Kuo of KGI Securities, Apple has a slew of new products in the works for 2014. The analyst has summarized his expectations for these new products in a new research note, and has also reaffirmed some of his previous claims for products in Apple’s pipeline for the rest of Fall 2013…

Expand
Expanding
Close

Update: Live webcast will be at www.apple.com/quicktime/qtv/earningsq413

Apple will hold its quarterly earnings call to announce results on October 28th, as noted on Apple’s investor website. Typically, Apple’s CEO Tim Cook and CFO Peter Oppenheimer will read prepared statements about the company’s performance, before opening the call to a question and answer session for analysts. The call will begin at 2PM Pacific / 5PM Eastern time. Apple will publish a press release reporting their results about half an hour before the call is due to begin.

Expand
Expanding
Close

A four-month long investigation into Apple’s tax affairs by the Securities and Exchange Commission has cleared the company of any wrong-doing in regard to the way the company accounted for taxes in respect of its overseas operations.

A Senate Permanent Subcommittee on Investigations hearing into Apple’s tax affairs had previously accused the company of seeking “the Holy Grail of tax avoidance” over cash held overseas. The hearing proved anti-climatic, with no wrong-doing established, and the investigation handed off to the SEC. The SEC has now closed the case.

Tim Cook made an unequivocal statement during the Senate hearing that Apple used no tax gimmicks … 
Expand
Expanding
Close

On the eve of the second anniversary of the passing of Apple co-founder Steve Jobs, Apple CEO Tim Cook has reflected on the moment in a company-wide email. A source has provided a copy:

Team-

Tomorrow marks the second anniversary of Steve’s death. I hope everyone will reflect on what he meant to all of us and to the world. Steve was an amazing human being and left the world a better place.I think of him often and find enormous strength in memories of his friendship, vision and leadership. He left behind a company that only he could have built and his spirit will forever be the foundation of Apple. We will continue to honor his memory by dedicating ourselves to the work he loved so much. There is no higher tribute to his memory. I know that he would be proud of all of you.

Best,

Tim

Following the launch of two new iPhone models and iOS 7 earlier this month, Tim Cook today emailed Apple employees thanking them for working tirelessly on the new products and rewarding them with extra, paid time off for the upcoming Thanksgiving holidays.

I realize many of you worked tirelessly to bring us this far. I know it required great personal sacrifice…In recognition of your incredible efforts and achievements, I’m happy to announce that we’re extending the Thanksgiving holiday this year.

Cook announced that Apple will shut down on November 25, 26, and 27 so employees can have the entire week off for the holiday. Retail and AppleCare employees will continue to work on those days to serve customers, but they’ll get the additional, paid time off at a later date along with international employees.

And I am proud to tell you that Apple is also a force for good in our world beyond our products. Whether it’s improving working conditions or the environment, standing up for human rights, helping eliminate AIDS, or reinventing education, Apple is making a substantial contribution to society.

None of this would have been possible without you. Our most important resource is not our money, our intellectual property, or any capital asset. Our most important resource — our soul — is our people.

In addition to announcing the additional time off, Cook noted that he visited Apple retail stores during the launch of the iPhone, and also thanked employees for the “substantial contributions” Apple has made to charitable causes.

Cook’s full letter to employees is below:
Expand
Expanding
Close